Will ApeCoin sustain gains after an 11% jump?
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ApeCoin has risen by double digits in a single day
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The gains reflect a growing appetite for attractively priced assets
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APE has met resistance, and further gains will depend on the Fed’s action
The price of ApeCoin APE/USD pumped by more than 11% in 24 hours. The surge happens amid a growing appetite for cryptos after the latest slowdowns. Leading cryptocurrencies Bitcoin and Ethereum have added 3.23% and 4.30%, respectively.
Santiment data indicates that the 24-hour gains reflect a “buy the dip” sentiment. The recent fall in prices made the tokens attractive, which got buyers back into the market. But the key question now is, can the gains be sustained?
A Fed rate decision on Wednesday will be a key determinant of whether the market will stay bullish. On the one hand, inflation continues to run high despite cooling recently. That has sparked speculations that the Fed could aggressively hike rates to tame prices. The move will be a bearish trigger for most, if not all, cryptocurrencies.
On the flip side, the Fed is expected to sound less hawkish, preferring a gradual rate hike. The course of action is likely to be taken if the Fed fears an economic meltdown if it acts too fast. A less hawkish Fed will be a bull trigger for cryptocurrencies.
APE pumps ahead of FED decision
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Like other cryptocurrencies, APE attracted dip buyers at the $4.6 bottom. The cryptocurrency trades at $5.8 following a buy-the-dip call.
Source – TradingView
A technical outlook shows ApeCoin has met resistance at $6.0. The cryptocurrency trades above all the moving averages strengthening a bull case. The MACD indicator is in the bull territory.
Concluding thoughts
We remain hesitant that the Fed decision will determine whether APE will sustain the gains. Having met resistance at $6.0, there could be a correction or consolidation as traders await the Fed decision.
